International Tax Alert - November 2015
In order to boost the foreign investment environment in India, the Government of India has brought in through a Press Note, FDI related reforms and liberalisation touching upon 15 major sectors of the economy.
The main intention of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route and save the time and energy of the investors. Further, the Department of Industrial Policy & Promotion (DIPP) has also been advised to consolidate all FDI related instructions contained in various notifications & press notes and prepare a booklet for ease of reference.
Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalilities for foreign investment. Further new sectors have also been opened to foreign investments.